Advantages and disadvantages of crowdfunding

Short-term financing bonds refer to securities issued by enterprises in the inter-bank bond market (that is, purchased by domestic banks, not issued to the society) and traded in the form of repayment of principal and interest within one year, which is a direct financing method for enterprises to raise short-term (1 year) funds. The advantages of short-term financing bonds are:

1, low financing cost;

2. The amount of funds raised is relatively large;

3. Improve the reputation and popularity of the enterprise. The shortcomings of short-term financing bill financing mainly include: 1, high risk;

2, the elasticity is relatively small;

3. The conditions are very strict. For friends who need financing, you can go to the crowd. See if there are other financing opportunities.

Compared with traditional VC, crowdfunding lacks entrepreneurial guidance.

In a word, the emergence of crowdfunding model has changed the investment mode of investors, allowing more investors to participate in entrepreneurial projects. While solving the financing difficulties of small and medium-sized enterprises, it also greatly reduces the investment risk for investors. At present, there are many legal issues involved in equity crowdfunding, and some modes of its operation may not conform to the provisions of the current law and are in a vague area of the law. However, equity crowdfunding is undoubtedly the most attractive of the four crowdfunding modes, and it also represents the development direction of crowdfunding. Only by careful supervision and good use of institutional norms can the equity financing platform have a bright future.

Legal basis: Article 10 of China's Securities Law clearly stipulates the public offering of securities, stipulating that "non-public offering of securities shall not use advertisements or publicly persuade peace."

Open in disguise. "The number of unspecified objects that crowdfunding financing platforms face in the process of raising funds often exceeds 200, which is easy to violate the Securities Law.

Provisions of the law on public offering of securities.